Honasa Consumer, the parent company of consumer brand Mamaearth, has topped a list of best performing entities backed by private equity funds in FY21.
The Practus Hurun India PE Performers List focuses on issues beyond the headline-grabbing valuations to assess such entities on the basis of cash flows, profitability and revenues.
The Sequoia Capital India and Sofina Ventures-backed Honasa has delivered a 491 per cent growth in the weighted average performance growth, as per the list and is followed by Encube Ethicals (343 per cent growth) and Ecom Express (283 per cent growth).
However, the report did not offer details on cash burn at such enterprises or direct co-relations between valuations and performances.
It enlisted the top investing professionals based on the bets that they have steered. Ravishankar G V of Sequoia tops the list with total investments of USD 125 million in companies like Zetwerk, Five Star Business and Honasa, followed by Niren Shah of Norwest Venture Partners.
”The next phase of India’s value creation has to be driven by the combination of capital and intellect. Private Equity funds along with their managers is one such catalyst that could accelerate value creation in the Indian economy,” Hurun India’s chief researcher Anas Rahman Junaid said.
Practus’ chief executive and founder Deepak Narayanan said it is important to assess what happens to a company beyond funding rounds and valuations, pointing out that there was a 96 per cent increase in PE investments at USD 70 billion in 2021.